Thai energy major delays oilsands project in Alberta

CALGARY Thailand’s PPT Exploration and Production Co. Ltd. is delaying a final investment decision on an oilsands project in Alberta that had initially been scheduled for completion in 2021.

In a letter to shareholders Thursday, PTTEP president and CEO Somporn Vonguthipornchai said the company will delay a sanctioning decision on its steam-based Mariana oilsands project and book an impairment of US$550 million as a result.

Shares in the Bangkok-based production company dipped five per cent to 86.25 Thai baht each following the decision, which the company said was due to low oil prices. U.S. light crude was trading at US$51.39 per barrel on Friday.

“PTTEP continues to monitor and assess the industry and the oil price environment in order to manage its project portfolio most effectively and create value for the company,” Vonguthipornchai wrote.

The letter did not provide a new timeline for a final decision.

The Thai major’s decisions follows a long list of companies including Norway’s Statoil ASA, The Hague-based Royal Dutch Shell Plc and France’s Total SA, that have either sold off or delayed their projects in the Alberta basin due to a combination of low commodity prices, lack of access to export markets, regulatory burdens and environmental considerations.